In This Week’s Issue…

by Alexander Kalis | Managing Partner & Head of Investments at Milltrust International

China Trade War Deal, China Pension Reform; Saudi Index Inclusion

China Trade War Deal

Talks between Treasury Secretary Steven Mnuchin and his Chinese counterpart on formulating a deal to resolve trade tensions between the two nations include a U.S. request for China to lower tariffs on cars and open its market to financial services. With President Donald Trump continuing to grant exemptions from his announced metal tariffs to U.S. allies, and the prospect of a deal with China, investors are dialing back their fears of a global trade war.

China Pension Reforms Entering Last Stage

Global asset managers are lobbying Beijing to offer tax benefits and other incentives to entice China’s aging population to invest in mutual funds for their retirement, as funds eye a multi-trillion dollar opportunity in commercial pensions. Their hopes for a bigger role in China’s pension market and its reform process received a boost this month when regulators published guidelines for the introduction of Western-style pension target funds.

Saudi to join FTSE emerging index

The Saudi Arabian stock marketwill join FTSE Russell’s emerging market index starting in March next year, the company said on Wednesday, a move expected to draw billions of dollars of fresh foreign portfolio investment to the kingdom.